Asked by Kalie Dijar on Sep 24, 2024
Verified
You lose your job and as a result your demand for steak falls.This implies that you consider steaks to be a
A) Complementary good
B) Normal good
C) Inferior good
D) Substitute good
Normal Good
A type of good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.
Inferior Good
A type of good whose demand decreases as the consumer's income increases, opposite to normal goods.
Complementary Good
A product or service that enhances the use or value of another product or service when used together.
- Distinguish between normal and inferior goods and how income changes affect their demand.
Verified Answer
PS
Prince Senga2 days ago
Final Answer :
B
Explanation :
Steaks are considered a normal good because your demand for them decreases as your income decreases, which is typical behavior for normal goods. When people have less income, they often buy less of goods they consider non-essential or luxury, such as steak.
Learning Objectives
- Distinguish between normal and inferior goods and how income changes affect their demand.